KUALA LUMPUR: OSK Research is maintaining a Buy on Alam Maritim for now with an unchanged target price of RM1.50 based on the existing PER of 15x FY11 EPS.
It said on Wednesday, March 2 that unless Alam Maritim's 1QFY11 results significantly disappoint, it is keeping its FY11 forecasts unchanged for now.
On Tuesday, Alam Maritim announced it was awarded an extension of contract to provide one accommodation work barge for about RM70.52 million.
The extension is for 21 months from April 12, 2011 to January 2013, with a further option to extend for an additional year.
Earlier Tuesday, its share price was bashed down by about 10% in tandem with its other peers. Apart from the overall bearish market sentiment, the selldown was partly related to the company's announcement of a quarterly loss, especially after it made a provision for the debt owing by Vastalux.
'We expect its FY10 to be a kitchen sinking year for but Alam should start seeing a recovery in FY11. However, as we mentioned earlier, we do not expect its 1H11 results to be very good as it was still affected by the monsoon season in 1Q.
'Also, Petronas' focus is now on the initial stage of marginal oilfield development and not towards the tail end, which would be from 2H11,' OSK Research said.
It said on Wednesday, March 2 that unless Alam Maritim's 1QFY11 results significantly disappoint, it is keeping its FY11 forecasts unchanged for now.
On Tuesday, Alam Maritim announced it was awarded an extension of contract to provide one accommodation work barge for about RM70.52 million.
The extension is for 21 months from April 12, 2011 to January 2013, with a further option to extend for an additional year.
Earlier Tuesday, its share price was bashed down by about 10% in tandem with its other peers. Apart from the overall bearish market sentiment, the selldown was partly related to the company's announcement of a quarterly loss, especially after it made a provision for the debt owing by Vastalux.
'We expect its FY10 to be a kitchen sinking year for but Alam should start seeing a recovery in FY11. However, as we mentioned earlier, we do not expect its 1H11 results to be very good as it was still affected by the monsoon season in 1Q.
'Also, Petronas' focus is now on the initial stage of marginal oilfield development and not towards the tail end, which would be from 2H11,' OSK Research said.
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